Swaziland, Lesotho might benefit from SA factories' migration
More than 380 registered textile factories are likely to relocate from South Africa to neighbouring countries such as Swaziland and Lesotho.
This means that 15 000 jobs would soon be available (shared among the countries) following the South African Clothing and Textile Workers Union (SACTWU’s) insistence on maintaining current minimum wages in the industry.
“This may lead to retrenchments, factory closures and relocations to neighbouring countries such as Lesotho and Swaziland, according to industry employers,” Sapa reports.
According to the news agency, textile companies in SA do not pay minimum wages and are facing shutdown by the Bargaining Council, which obtained writs of execution against offenders.
Swaziland Investments Promotion Authority (SIPA) Chief Executive Officer (CEO) Phiwayinkhosi Ginindza said this would come as an advantage to the country in terms of job creation.
He said, however, the country could not accommodate such a large number of factories because they would need infrastructure such as factory shells.
“380 is a very large number and the country cannot accommodate such a number. We can accommodate those that we can,” he said.
Ginindza said most of the textiles companies in the country complied with the regulations of the industry in terms of wages.
He said there was a tripartite arrangement which comprised of government, the companies and the employees who consult each other and discuss the issue of wages. He said SIPA, working with the ministry of commerce, industry and trade also did surveys to ensure that the companies complied with the regulation.
He said the development would come as an advantage considering that the country had a market access through AGOA and would also service the region, including South Africa, which would not have the products if the factories shut down in that country.
All factories in South Africa will have to pay 70% of minimum wages by the end of March, and be fully compliant by April 2012.
“Should these targets not be met, the writs will be served and factories closed down. However, various manufacturers, according to Sapa, simply cannot afford the wage model, and are likely to either retrench or shut down.”
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